Generative AI tools have increased the ease of committing fraud, as seen in high-profile incidents involving deepfake technology. Notably, a finance employee in Hong Kong was deceived into transferring $25 million to fraudsters posing as colleagues. Despite these risks, financial services companies are utilizing AI to bolster fraud prevention measures. A Mastercard and Financial Times survey indicated that 42% of issuers and 26% of acquirers have successfully saved over $5 million in fraud attempts through AI implementation. They are combining AI with traditional methods like two-factor authentication to enhance security.
The proliferation of advanced and easily accessible generative AI tools in recent years has made fraudulent activity exponentially easier, as exhibited in high-profile scams.
In a memorable incident, a finance employee in Hong Kong was misled into wiring $25 million to AI-generated deepfake fraudsters who posed as executives.
A recent survey by Mastercard revealed that 42% of financial issuers and 26% of acquirers saved over $5 million from attempted fraud using AI tools.
Despite the threat of scams, AI is also being used by financial services companies to enhance digital security alongside traditional security methods.
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